USDCAD Trading Analysis

@Colibritrader

Dear traders,

Last time I wrote about USDCAD.

It looks like it takes some time for the pair to establish a direction.

The minor resistance area at 1.3400 is still acting as a strong level for this pair.

I have not seen any bearish price action confirmation so far. I was expecting to see a bull trap, but so far price has not been activated.

 

USDCAD Trading Analysis

Today, I have been analysing this pair in-depth and it looks like price might have just re-tested the level of 1.3400 from above.

What does that mean?

It means that the resistance level might have already turned into a support level.

I am seeing an inside bar (as shown in the screenshot), which bodes well for the bulls.

Therefore, we might see more buyers joining the queue to push the price higher.

All in all, I am not sure if I will trade this setup, because of the possibility of a reversal. I can put it in another way- if my life was on the line and I was given a choice to buy or sell, I will be more willing to go long

Watch out: Be still cautious for a bull trap just above this level and a failed breakout. 

Trading is a game of patience, so as long as you are patient enough, you will have success.

Do not rush trades even if they look appealing. If a trade does not tick all boxes like this one, the best course of action is to just look for a better one.

Happy Sunday,

Colibri Trader

p.s.

Check out my recent article on Not Giving Up in Trading

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